The Bay isn't a major player in the Winnipeg market anymore (they've got three stores and one of them is a run-down downtown shithole that they appear to be trying to demolish through neglect), so this isn't going to be a huge boon to me. But it's great that they're at least trying! Like you say, right now it's mostly just Walmart and Toys'R'Us selling toys, so any extra competition is a good thing no matter how small their footprint.

That said, the Bay (and Sears too) are a dinosaur that's well on it's way to becoming extinct, what with their awkward store layouts, decrepit infrastructure and impossible-to-find staff. I doubt this move is going to save them, but hopefully it'll lead to other stores like Giant Tiger or Superstore or whoever to expand their toy offerings.